.htaccess isn't FULLY working

I have setup two virtual hosts. Both of these have 'AllowOverride All' set.

I have two .htaccess files (one for each in their respective
directories) which specify as follows:

DirectoryIndex home

<Files home>
ForceType application/x-httpd-php
</Files>

One virtual host works perfectly. The other however, only acknowledges
the 'DirectoryIndex' part and ignores the <Files> directive.

This is very bizarre and is starting to freak me out, as I've wasted
hours trying to fix it. I have tried installing it on an external web
server and am getting the same problems. Any ideas?

I know it sounds silly. Did you restart the server?

Terry Wilson wrote:
> One virtual host works perfectly. The other however, only acknowledges
> the 'DirectoryIndex' part and ignores the <Files> directive.